CO-OP PATSANSTHA AUDITS
Co-Op Patsanstha Audits
Any ten persons who are competent to enter into contract may make an application to the Registrar of Co-operative Societies as per section 6 of the Co-operative Societies Act, 1912. By-laws may be framed by each society and should be registered with Co-operative Societies. Effectiveness of change in by-laws of societies is applicable only when changes are approved by Registrar of Societies. There are two types of society’s, limited liabilities and un-limited liabilities societies. Any member is not liable to pay more than the nominal value of share held by them and no member can own more than 20% of shares of societies.
Government is encouraging co-operative societies to help society. Co-operative societies are operative in various sections like consumer, industrial, service, marketing, etc.
Under accounting system of Co-operative societies, the terms receipt and payment are used for two-fold aspect of double entry system.
Members are elected at the annual general meeting of the society. Day-to-day work of cooperative society is managed by the managing committee.
Audit of Co-operative Society
Let us now discuss the provisions for Audit as Per Section 17 of the Co-operative Society Act,1912 −